The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1887-05-04
At THE CAPITAL.
LANSING, April %, 1857.

INSURANCE COMPANIES INVESTIGATED.
The investigation of the cooperative
mutual life insurance companies doing
business in this State, ordered by the
Legislature a month ago, has been con-
stantly conducted since by the special COM
mittee composed of Representatives Cross.
Douglass, and Goodrich, and Senators
Westgate and German. aided by Stenog-
rapher Haines, of Bay City, and other
necessary clerical help, with Sergeant-at-
Arms Stoner of the Senate. The commit
tee has quietly dropped down upon the
several companies 10 be Investigated, I'M
announced and when they least expected
them. In addition to the work done and
testimony taken in different portions of the
State, much testimony has been taken at
the headquarters of the committee at the
capital, so that the committee has taken
altogether eight hundred and twenty-five
pages of closely written type writer tes-
timony. The report was made to the two
houses on the 22d. and sums up the testi-
mony with the conclusions and recommen-
datlons of the committee in an able and
exhaustive manner, the report covering 243
pages of the same style OF closely written
type writer matter. The testimony shows
that there is not only something rotten in
Denmark" but that the whole system of
cooperative mutual benefit insurance as
carried on in this State to- day and for the
past few years is a most gigantic fraud and
swindle on the confding public, who are
yearly pouring their thousands into the
laps of the officers of these associations,
who pocket SO much of it as they please,
and pay back to the friends of those who
die in good faith that they have left lega-
cy larger or smaller to some dependent rel
alive, as little as they choose, the balance,
in some case as high as four fifths of the
total receipts of the company, being
charged up to Expenses" The report shows
that OF the tifty-six companies doing bust
ness during the four years preceding Janu-
AIRY last all but twenty eight have expired.
OF the twenty light remaining, sixteen are
graveyard and the other twelve are doing
fairly legitimate business. The total
amount of money received during these
four years from their members by the
fifty-six concerns is nearly $4,000, 900, from
which about 100000 was returned to
benefciaries, and 100000 went for ex-
penses of officers, etc. The ratio of ex-
penses to income is startling one, being
about % per cent. The average amount
paid by these sixteen companies during
1856 on each 81, 200 of losses is $166:
while the amount of expense for
the same concerns during last year was
Sl29,276.O6, and the amount paid in losses
was $40, 57i.93. The average age of the
members of these sixteen concerns is sixty
three or, an average as high as the maxi
mum age of the risks taken by the legiti-
mate companies. The amount of losses at
their face value, of the sixteen associations
In 1886, $4,000, of which only $4,000
was paid. The fraternal associations were
not under consideration, and, aside from
them, the investigation shows that the few
really safe and honorable companies are
the Commercial Mutual of Detroit, the
Detroit Mutual Benefit. the Masonic
Mutual of Grand Rapids, the Michigan
Mutual Benefit of HIllsdale, the Union
Mutual of Detroit, and the Western Mutual
Life and Accident Society of Detroit.
WILL IMPEACH REPRESENTATIVE DAKIN.
Next to the graveyard insurance report
the sensation of the week and of the ses-
sion was when, on the Goth, the Speaker
presented 10 the House quite a lengthy
communication signed and sworn to by
Frederic l.. Eaton, of Saginaw, reciting in
detail the fact that Representative Milo II.
Dakin, of the First Saginaw District, had
on different occasions told him he could
not secure the passage of the pending bill
to amend the charter of Saginaw City I'M
less he was furnished with sum of money
sufficient to fix" certain of the members
and make them solid Tor the bill, which,
being q local measure, could not be sup
posed TO interest the members generally.
When press q to tell who could, in his
Judgment, be influenced by money, and
how much would be needed in individual
cases, he took a House roll call and checked
off the names of fifteen of the most able
and reputable of all the membership of
the House, those whom everybody knows
L., I'LL, 1..,o ,,ol,
consideration as any members of the body,
and marked opposite their names sums
varying from So 10 S25. A special COM
mittee was at once appointed to investigate
the charges, and early on the next day sub
nitted the following:
Your committee to whom was referred
the matter of the affidavit of Frederic l..
Eaton, or Saginaw City, preferring certain
charges against Milo II. Dakin, member
of this House, have had the matter under
consideration, and ask permission to make
this preliminary report OF the situations:
/. The charges preferred are of very
serious character, and, if sustained by suf-
ficient evidence, the said Milo II. Dakin
should be expelled from the House.
2. Your committee therefore recommend
that the investigation of said charges be
conducted by the House, with the Speaker
in the chair the officers and reporters of
the press in their respective places, and
the doors of the hall and gallery open, with
a view to the greatest publicity, consistent
with decorum, in accordance with rule So of
the House, and that this committee con-
duct the examination on the part of the
House, and be empowered to subpoena wit
nesses and employ a stenographer.
That Milo II. Dakin be permitted to APP
pear in person and with COUNSEL that he
be furnished every facility to compel the
attendance of witnesses and TO procure
any testimony relevant to the case which
he may desire.
That Tuesday, April 26, at 1915 a. M,
be fixed as the date upon which this exam
ination shall commence, and that at least
three days previous to said date formal
charges shall be preferred by your COM
mittee and entered upon the journal of
this House, that the said Milo III. Dakin
may know exactly what charges are made
against him, and be prepared to answer
the same; and finally, that after the COM
pletion of such examination the House de-
eide, in the manner contemplated by the
Constitution, if such charges, or any of
them, have been proved. and if the decision
shall be in the affirmative, then to decide
upon the adequate punishment that justice
demands. A. X. CHAPMAN,